Most Popular
1. It’s a New Macro, the Gold Market Knows It, But Dead Men Walking Do Not (yet)- Gary_Tanashian
2.Stock Market Presidential Election Cycle Seasonal Trend Analysis - Nadeem_Walayat
3. Bitcoin S&P Pattern - Nadeem_Walayat
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
4.U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - Raymond_Matison
5. How to Profit from the Global Warming ClImate Change Mega Death Trend - Part1 - Nadeem_Walayat
7.Bitcoin Gravy Train Trend Forecast 2024 - - Nadeem_Walayat
8.The Bond Trade and Interest Rates - Nadeem_Walayat
9.It’s Easy to Scream Stocks Bubble! - Stephen_McBride
10.Fed’s Next Intertest Rate Move might not align with popular consensus - Richard_Mills
Last 7 days
US Presidential Election Year Stock Market Seasonal Trend - 29th Nov 24
Who controls the past controls the future: who controls the present controls the past - 29th Nov 24
Gold After Trump Wins - 29th Nov 24
The AI Stocks, Housing, Inflation and Bitcoin Crypto Mega-trends - 27th Nov 24
Gold Price Ahead of the Thanksgiving Weekend - 27th Nov 24
Bitcoin Gravy Train Trend Forecast to June 2025 - 24th Nov 24
Stocks, Bitcoin and Crypto Markets Breaking Bad on Donald Trump Pump - 21st Nov 24
Gold Price To Re-Test $2,700 - 21st Nov 24
Stock Market Sentiment Speaks: This Is My Strong Warning To You - 21st Nov 24
Financial Crisis 2025 - This is Going to Shock People! - 21st Nov 24
Dubai Deluge - AI Tech Stocks Earnings Correction Opportunities - 18th Nov 24
Why President Trump Has NO Real Power - Deep State Military Industrial Complex - 8th Nov 24
Social Grant Increases and Serge Belamant Amid South Africa's New Political Landscape - 8th Nov 24
Is Forex Worth It? - 8th Nov 24
Nvidia Numero Uno in Count Down to President Donald Pump Election Victory - 5th Nov 24
Trump or Harris - Who Wins US Presidential Election 2024 Forecast Prediction - 5th Nov 24
Stock Market Brief in Count Down to US Election Result 2024 - 3rd Nov 24
Gold Stocks’ Winter Rally 2024 - 3rd Nov 24
Why Countdown to U.S. Recession is Underway - 3rd Nov 24
Stock Market Trend Forecast to Jan 2025 - 2nd Nov 24
President Donald PUMP Forecast to Win US Presidential Election 2024 - 1st Nov 24
At These Levels, Buying Silver Is Like Getting It At $5 In 2003 - 28th Oct 24
Nvidia Numero Uno Selling Shovels in the AI Gold Rush - 28th Oct 24
The Future of Online Casinos - 28th Oct 24
Panic in the Air As Stock Market Correction Delivers Deep Opps in AI Tech Stocks - 27th Oct 24
Stocks, Bitcoin, Crypto's Counting Down to President Donald Pump! - 27th Oct 24
UK Budget 2024 - What to do Before 30th Oct - Pensions and ISA's - 27th Oct 24
7 Days of Crypto Opportunities Starts NOW - 27th Oct 24
The Power Law in Venture Capital: How Visionary Investors Like Yuri Milner Have Shaped the Future - 27th Oct 24
This Points To Significantly Higher Silver Prices - 27th Oct 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

The Only Stocks to Buy in a Recession

Companies / Investing 2022 Oct 25, 2022 - 10:30 PM GMT

By: Submissions

Companies

By Chris Wood : When you think of “recession-proof” stocks... what comes to mind?

Let me guess… toilet paper and toothpaste?

The widespread (but wrong) belief is companies that sell “essentials,” like Clorox or Johnson & Johnson, are the best way to ride out a recession.

No offense... but I’m not interested in making 5% on a toilet paper stock.


Not today… when there’s a brand-new group of stocks that are all but guaranteed to grow rapidly through a recession.

  • When I say “all but guaranteed to grow”… I mean it.

I put a 99.5% probability on these stocks continuing to grow fast… regardless of economic conditions.

Because this group of stocks has the most elusive trait in all of investing.

I’m talking four magic words:

“Grow no matter what.”

Most stocks do not grow “no matter what.” Most stocks only grow IF certain conditions are met.

FedEx will grow… IF the economy grows.

JPMorgan will grow… IF the Federal Reserve cooperates.

Netflix will grow… IF it outmaneuvers the other big streamers.

In a recession, “IFs” tend to go against you. The key is to eliminate as many IFs as possible.

You want to own stocks that’ll grow no matter what.

In many past recessions, the Cloroxes of the world may have been the only option.

This time around, it’s very different.

Because the government is essentially forcing one young sector to grow rapidly no matter what the economy does.

  • Before I tell you what this sector is, let me assure you I’m no fan of the government picking winners and losers in the stock market…

I believe in the free market.

My dad was one of the few college professors who defended free markets.

I don’t agree with the government funneling $370 billion into one emerging sector.

But that’s exactly what the so-called Inflation Reduction Act set in motion.

Yep… even though this massive bill, signed by President Biden, has “inflation reduction” in the name… it’s actually the biggest subsidy of all time to the green energy industry.

Time Magazine calls it “The most significant climate legislation in US history.”

It’s the latest instance of world governments shoving unprecedented sums of cash into green energy. International governments are hell-bent on pushing the world to zero carbon. Every country of consequence on earth has agreed to the Paris Climate Accords.

  • My team and I have spent hundreds of hours studying climate tech. Like any industry on the receiving end of government largess… there are some questionable and ideologically-driven projects I wouldn’t touch.

But there are also genuinely amazing opportunities in this sector that Bloomberg calls “Recession-Proof.”



Source: Bloomberg

Look at the stunning growth in sales of electric vehicles (EVs), for example.

While the rest of the market struggles… EV sales are skyrocketing to new highs.

Per Yahoo Finance:

Car sales are down this year. But EV sales are up. And they aren’t just “up” — they’re up big.

…Through June, consumers have purchased 4.1 million electric cars. That puts EV sales on track to top 10 million this year. And that would represent growth of more than 50% for the whole year.

  • Can you name another industry growing 50% (!) this year?

Tailwinds this powerful don’t come along often in markets.

Stocks, bonds, gold… almost everything is down this year. Not just a little… a lot. A 60% stock/40% bond portfolio is having its worst year since World War 2.

Yet EV sales are soaring to new highs.

Governments are practically begging folks to buy EVs… and it’s working. The Inflation Reduction Act will hand people up to $7,500 for buying an EV.

Not only that… governments are actively banning the competition.

Governments in California, Europe, and China have already banned the sale of new gas-powered cars in the future.

Bloomberg says the global EV market will skyrocket to $46 trillion by 2040.

How’s that for recession-proof?

  • Many EV stocks have already handed out explosive gains…

Workhorse (WKHS), which makes EV vans and drones, rocketed 11,511% from December 2018 to February 2021...

Chinese EV maker NIO (NIO) soared 5,529% from September 2019 to January 2021...

And Tesla (TSLA) has handed out peak gains of 22,000% over the past 10 years.

But to capitalize on the next wave of EV profits, we’re looking beyond the traditional opportunities.

3 Breakthrough Stocks Set to Double Your Money in 2022

Get our latest report where we reveal our three favorite stocks that can hand you 100% gains as they disrupt whole industries. Get your free copy here.

By Chris Wood

http://www.riskhedge.com

© 2022 Copyright Stephen McBride - All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2022 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in